Resilient Budget, but greater protection needed for vulnerable workers

27 Oct 2026 - Economy | Home | News | Politics | Technology | Trade

The Union acknowledges the strengthening of social protection and purchasing power, while emphasising the importance of further investment in the quality of work and life.

The General Workers’ Union (GWU) considers that Budget 2027 includes a number of positive measures that will contribute to strengthening social protection and safeguarding the purchasing power of workers, pensioners and families, particularly in light of international economic and geopolitical challenges.

The GWU acknowledges the importance of the Government continuing to prioritise support for families despite these circumstances, while maintaining energy subsidies as an important measure for economic and social stability.

The Union welcomes the Super Bonus of up to €1,000, the weekly Cost of Living Adjustment (COLA) of €6.41, the €10.41 weekly increase in the national minimum wage, including COLA, as well as the continuation of the Additional COLA Mechanism. These measures, together with the retention of energy subsidies, for which approximately €400 million has been allocated for 2027, will help ease the pressure of the rising cost of living on families.

The GWU also recognises the importance of the €10 weekly increase in pensions, alongside other measures aimed at improving pensioners’ incomes. The Union also welcomes support measures targeting families, including the increase in the Carers Grant, enhanced adoption benefits, assistance for those caring for individuals at home, and the continuation of free childcare services.

These initiatives reflect the importance of ensuring that economic policy continues to address the needs of families.

Greater focus on quality of life and working conditions

The GWU believes that the announced measures should form part of ongoing efforts to address the challenges affecting workers’ quality of life, including housing costs, traffic congestion and pressure on public services.

In this context, the Union looks forward to further initiatives that improve access to affordable housing, particularly for workers and young people, while ensuring that economic growth is accompanied by better wages and quality working conditions.

The GWU also acknowledges the tax measures benefiting parents and small businesses, while encouraging further discussion on how fiscal policy can continue to support middle-income families.

The Union reiterates the importance of further investment in training, upskilling and reskilling workers, particularly in light of developments in digitalisation and artificial intelligence, to ensure that workers can benefit from emerging opportunities.

GWU working to ease transport costs for Third-Country workers

Regarding the measure under which third-country workers will no longer benefit from free public transport, the GWU believes it is important to consider the financial impact this change may have on these workers, particularly those on low incomes who rely on public transport to commute to work.

In this regard, the GWU has already started contacting companies involved in recruiting and bringing third-country workers to Malta to discuss practical solutions, including the possibility of these companies absorbing part of the transport costs.

The Union believes that a fair balance must be achieved to safeguard workers’ interests and minimise the additional financial burden on those contributing to the Maltese economy.

Commitment to a fairer and more sustainable economy

The GWU considers that Budget 2027 introduces a number of measures that strengthen social protection and economic stability, while providing an opportunity for continued discussion on the structural challenges affecting workers and families.

The Union firmly believes that economic progress and increased national productivity must translate into tangible benefits for workers through decent wages, improved working conditions and a better quality of life.

The GWU will continue to work constructively with the Government and social partners to ensure that the Budget measures, together with other long-term initiatives, contribute to a fairer and more sustainable economy that continues to improve the quality of life of workers and their families.

This is the GWU’s initial reaction to Budget 2027. In the coming days, the Union’s National Council will issue its official position.